Meta Platforms Inc., the parent company of Facebook, WhatsApp, and Instagram, is set to cut thousands of jobs as soon as this week. Bloomberg reports that people familiar with the matter have disclosed this information.
In an earlier round of cuts, Meta slashed 11,000 workers in its first-ever major layoff. Mark Zuckerberg, the company CEO explained in November that layoffs are part of the steps considered in becoming a leaner and more efficient company.
Last month, The Washington Post reported that the company would facilitate more job cuts focusing on regional divisions and branches to reorganize and scale down efforts that could affect thousands of workers. The company also planned to cut discretionary spending and extend the hiring freeze.
The company has been working towards this “efficiency” by cannily managing its structure, giving buyout packages to managers and dismissing teams it considers immaterial. Sometime last year, Chris Cox, the company’s chief product officer, warned employees of “serious times,” noting that employees must “execute flawlessly in an environment of slower growth.”
A February report explained that thousands of workers, around 10% of Meta staff, received annual reviews that indicated they were underperforming, which seemed to signal further job cuts.
Reasons for Meta’s untimely layoffs
Diverse reasons can be said to have triggered layoffs for Meta, just like every other tech company. Fortunately, the CEO told its employees the company planned to trim the management and speed up decision-making processes.
The business recently planned to reduce expenses due to the turn of events it experienced during the past year. The corporation was valued at $1 trillion but has significantly impacted its valuation and price since then due to numerous circumstances.
It lost billions of dollars in advertising revenue due to TikTok’s younger user exodus from Facebook and Instagram, its two giant revenue generators.
The big tech company hopes to “flatten” its organizational structure as part of that approach by eliminating intermediate managers and applying productivity-enhancing strategies like artificial intelligence. In the bid to cut costs, the company announced weeks ago that Instagram’s “Live Shopping” service would be discontinued.
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